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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: johnlag who wrote (6555)	6/10/1999 3:19:00 PM
From: Kerm Yerman	Read Replies (2) \| Respond to of 24921

Johnlag / Calahoo Petroleum Yes, I'm familiar with the company. Added it to my portfolio 2-3 months back in time. I thought the company really offered value for one's investment dollar - or to put it mildly - undervalued. As we speak, they are producing 3600 boe/d. They averaged 1721 boe/d in 1997 and 3000 boe/d in 1998. The forecast for 1999 "was" 4000 boe/d. Looks like cash flow will come in around $0.60 for 1999. Based upon the current share price, that's only a 3.1X cash flow to price ratio for 1999 - and we're in the month of June. The company deserves a better ratio than that, especially in an improving market environment as we are in. The kicker, about 75% of production is natural gas. Come next May, don't be surprised to see the company trading 6X year 2000 projected cash flow. For now, I'm guess estimating $0.85 for year 2000, which transforms into $5.10/share. Current debt will not hold the company back. Debt is about 2.0X 1999 cash flow, less than the average for companies of this size. I also love their acreage position - both in terms of location and extent of holdings/accessability. I don't know what the common denominator is between Calahoo & Bonavista is, which would be the contributing factor for a takeover attempt. They both do operate in the Peace River Arch area. I have no clue how close their properties are to each other. Bottom line for me, I like the company.